ExxonMobil sees North America becoming net oil, gas exporter by 2025

The closely watched annual forecast of energy trends, set to be released Tuesday, concludes the growth of US and Canadian oil and gas production has staying power and could lead to more international shipments of oil and gas, said Exxon's vice president of corporate strategic planning, who led the study.

Keywords:

By TOM FOWLER

North America will become a net energy exporter by 2025, thanks
to a surge in oil and gas production and rapid improvements in
energy efficiency, ExxonMobil predicts in its latest long-term
energy outlook.

The closely watched annual forecast of energy trends, set to
be released Tuesday, concludes the growth of US and Canadian
oil and gas production has staying power and could lead to more
international shipments of oil and gas, said Bill Colton,
Exxon's vice president of corporate strategic planning, who led
the study.

Exxon's forecast follows similar estimates by the US Energy
Information Administration and the International Energy Agency,
which have recently predicted North America will produce more
energy than it uses in just a few decades, a shift with
geopolitical as well as economic ramifications.

Exxon predicts that an anticipated decline in coal usage by
power plants will accelerate as more efficient
natural-gas-fired plants are built. The Irving, Texas, company
forecasts coal use will drop 33% from 2010 to
2025,substantially more than its previous 23% estimate.

"The economics of natural gas in the power-generating sector
continue to look even better over time," Mr. Colton said.

The US is in the midst of a renaissance of oil and gas
production thanks to a combination of technologies, including
hydraulic fracturing and horizontal drilling, which are
unlocking deposits trapped in shale formations throughout the
country.

Daily US oil production reached a 15-year high in September,
according to the EIA, and is expected to keep climbing. US
natural-gas production will outpace the nation's demand by
2020, the EIA said last week.

Growing production from Canada's oil-sands region, much of
it exported to the US, and the continued growth of deep-water
Gulf of Mexico production is also bolstering forecasts.

The net energy exports forecast for North America by Exxon
don't mean the US would be energy independent, however, as it
will still rely heavily on Canadian crude production, Mr.
Colton said.

Global energy demand will increase 35% from 2010 to 2040,
with most of the increased demand coming from developing
nations like India and China, the Exxon report
says.

Developed regions like the US, Canada and Europe will see their demand flat or
declining as they become more efficient, the company
said.

The Wall Street Journal (via Dow Jones
Newswires)

Have your say

All comments are subject to editorial review.
All fields are compulsory.